wAbstract
@This paper applies the panel unit root, heterogeneous panel cointegration
and panel-based dynamic OLS to re-investigate the co-movement
and relationship between energy consumption and economic growth
for 30 provinces in mainland China from 1985 to 2007. The empirical
results show that there is a positive long-run cointegrated relationship
between real GDP per capita and energy consumption variables.
Furthermore, we investigate two cross-regional groups, namely
the east China and west China groups, and get more important results
and implications. In the long-term, a 1 increase in real GDP
per capita increases the consumption of energy by approximately
0.58-0.50 and accordingly increases the carbon dioxide emissions
by about 0.41-0.43 in China. The economic growth in east China
is energy-dependent to a great extent, and the income elasticity
of energy consumption in east China is over 2 times that of the
west China. At present, China is subject to tremendous pressures
for mitigating climate change issues. It is possible that the
GDP per capita elasticity of carbon dioxide emissions would be
controlled in a range from 0.2 to 0.3 by the great effort.
Keywords: Energy consumption; Economic growth; Carbon dioxide
emissionsx
1. Introduction
2. Data description and definition of the variables
3. Theoretical structure and empirical results
@3.1. Panel unit root test
@3.2. Panel cointegration test
@3.3. Panel cointegration estimation
4. Conclusions and policy implications
Acknowledgements
References